Understanding the Pre-Approval Process: What to Expect and How Long It Takes, if you’re thinking about buying a property, you’ll need to go through the pre-approval process. This is where your bank or lender assesses your financial situation and decides if you’re eligible for a loan. In this blog post, we’ll discuss what to expect during the pre-approval process and how long it typically takes. We’ll also explain how the approval process works in Australia.
When you apply for a loan, your bank or lender will assess the following information:
• Your income and savings: Your lender needs to know if you have enough money to make regular repayments. They’ll look at your salary and any other sources of income such as investments. They’ll also consider your savings, including how much you have in the bank and any other assets that can be used as security for the loan.
• Your employment situation: To get pre-approval, you must be employed either full-time or part-time. The length of your employment will also be taken into consideration as well as any changes in job or industry.
The pre-approval process
The pre-approval process typically takes between two and six weeks in Australia, depending on the lender. During this time, the lender might ask for additional information such as payslips and bank statements to verify your income and financial situation. Once approved, you’ll receive a letter confirming that you’re eligible for a loan up to a certain amount.
You can still be declined!
It’s important to note that pre-approval doesn’t guarantee that you’ll get the loan. Banks can still decline your application if they find out more information about your financial situation during the loan application process. The pre-approval process is simply a way for you to gain an indication of the amount you can borrow and what terms you can expect.
We hope this blog has provided you with a better understanding of the pre-approval process and how long it can take. If you have any further questions, please don’t hesitate to get in touch with us. Good luck!
